On August 30, 2019, the US Commerce Department’s Bureau of Industry and Security (“BIS”) published Due Diligence Guidance urging companies to employ heightened due diligence when exporting to Pakistan (the “Pakistan Guidance”). The Pakistan Guidance specifically focuses on (i) supplemental licensing requirements applicable for items (e.g. goods, software, or technology) subject to the Export Administration Regulations (“EAR”) that may be destined to nuclear or missile activities, and (ii) best practices for screening customers in Pakistan to prevent diversion of items subject to the EAR to unauthorized end uses and end users.
BIS published the Pakistan Guidance in an effort to bring attention to compliance risks related exports/reexports to Pakistan after investigations by the BIS Office of Export Enforcement “revealed schemes” by Pakistani entities attempting to acquire items subject to the EAR for entities listed on the Entity List. The Pakistan Guidelines appear to reflect an enforcement focus on Pakistan from BIS, so companies exporting/reexporting items subject to the EAR to Pakistan should take into account these BIS recommendations to ensure compliance.
Key takeaways from the Pakistan Guidance are found below: